The Australian Primary Hemp Ltd (ASX: APH) share price is on the rise following the announcement of a new distribution deal.
At the time of writing, the company's shares are swapping hands for 39 cents, up 5.41%.
What did Australian Primary Hemp announce?
Investors are sending Australian Primary Hemp shares higher after digesting the company's latest positive update.
According to this morning's release, Australian Primary Hemp secured its largest retail distribution agreement with Coles Group Ltd (ASX: COL).
Under the deal, the supermarket giant will range 5 additional Mt. Elephant products from Australian Primary Hemp. It is expected that the new inclusions will be available for purchase in stores from July 2021.
Australian Primary Hemp estimates that the agreement will generate roughly $3 million in revenue per year.
The latest news follows the successful relationship between both parties. In early March, Australian Primary Hemp signed its first retail distribution agreement with Coles to stock its Mt. Elephant 'mylk' hemp and oat milk range.
Australian Primary Hemp managing director and CEO Neal Joseph commented:
APH's Mt. Elephant brand was developed to focus on capturing the demand for high-quality, plant-based 'superfood' products – with Australian-farmed hemp used in all our products.
This latest agreement with Coles represents APH's largest retail distribution agreement with any retail partner, and we are proud to see Coles recognise the Mt. Elephant product range. We look forward to further potential agreements in the future as we further our Company's development in becoming a producer, manufacturer, and distributor of premium hemp-based products.
Australian Primary Hemp share price snapshot
Over the last 12 months, the Australian Primary Hemp share price has gained around 190%, with year-to-date up 17%. The company's shares reached a multi-year high of 62 cents earlier this year, before treading lower.
On valuation grounds, Australian Primary Hemp commands a market capitalisation of approximately $27 million, with 75 million shares outstanding.
